The phrase "as a wealth effect" is correct and usable in written English.
It can be used in discussions related to economics or finance, particularly when referring to the impact of changes in wealth on consumer behavior or economic activity.
Example: "The increase in home values contributed to consumer spending, acting as a wealth effect that stimulated the economy."
Alternatives: "as a result of increased wealth" or "due to wealth changes".
2. Albert Kyle and Wei Xiong (2001), Contagion as a Wealth Effect, Journal of Finance 56, 1401-1440.
Higher asset prices help consumers feel wealthier, which makes them more likely to spend money, which boosts the economy in turn - this is known as a wealth effect.
An increase in SSW could be interpreted as a wealth effect, so as an incentive to increase the consumption of leisure, which requires retiring earlier.
"It is merely a diagnostic tool to make a judgment as to whether a wealth effect is indeed functioning in the economy," Mr. Greenspan said.
One way that QE might work is via a wealth effect - as consumers feel richer, they will spend more.
Most economists assume that prolonged falls in share prices have a "wealth effect": that is, as people see the value of their shareholdings fall, they feel poorer and curb their spending.
As Hausman notes, a collapse in stocks trading at price/earnings multiples of 100 and 1,000 would have a "wealth effect" impact on the economy.
That phenomenon — known as a "negative wealth effect" — is a psychological effect that takes hold when investors feel less prosperous because of stock market declines, prompting a pullback in spending that affects decisions about future business expansion and hiring.
The Fed is worried that asset price inflation in the form of sky-high stock prices, for instance could lead to increased consumption in a phenomenon known among economists as the "wealth effect".
They think Greenspan is worried about asset price inflation in the form of sky-high stock prices, for instance which could lead to increased consumption in a phenomenon known among economists as the "wealth effect".
